We founded Fross & Fross Wealth Management with the shared vision of creating a truly world-class experience for our clients. In the years leading up to its founding, we shared careers in the financial services industry that were, perhaps not surprisingly, remarkably similar. Prior to starting our own firm, we both worked at Bankers Life and Casualty Company where we both held management positions. Our professional registrations include the Series 6, 7, 66, 65 and 63 registrations. We both hold Life, Health, and Variable Annuity licenses with the state of Florida and are registered in 25 other states collectively. We are also both Top Ten representatives with our broker dealer, SII Investments, Inc. We co-founded Platinum Advisor Strategies in 2009, which is a consulting company that helps over 1000 other financial advisors serve their clients well. As financial industry thought leaders, we regularly keynote industry conferences, and in addition to writing for Forbes have been featured in The New York Times, as well as on The Street.com and CNN Money, as well as numerous appearances in financial advisory trade journals like Financial Planning, Investment News, REP and more. As an independent financial planning firm, we represent our clients and their interests rather than any specific company. While some financial institutions recommend investment products that are manufactured by the parent of subsidiary business entities, we have no such ties. Our independence is vital to delivering objective, unbiased recommendations. Visit us at frossandfross.com.

Obamacare: Is The New Healthcare Law Good Or Bad For Retirees?

With all of the recent changes to Medicare and the introduction of the Patient Protection and Affordable Care Act (commonly known as the ACA or Obamacare,) there’s a lot of confusion about how retirees may be affected by the new healthcare law. Will the new healthcare law be good or bad for retirees?

Thomas: Overall, I think that the ACA will largely benefit retirees. The new healthcare law makes some important improvements to Medicare, such as shrinking the “donut hole,” of prescription and catastrophic coverage and adding free annual check-ups for many Medicare recipients.

The ACA is also a boon to early retirees who aren’t yet eligible for Medicare. The new law will make it much easier for these folks to get coverage because it prohibits insurers from turning away applicants with pre-existing conditions and prevents patients from being dropped from coverage if they become ill.

Robert: I agree, but I’m also concerned that insurance premiums will have to go up across the board to pay for the increased coverage of new patients and procedures. There are also serious concerns that fewer doctors will take Medicare patients because of lower compensation and a real shortage of general practitioners and geriatricians.

Solutions:

Unfortunately, there’s no crystal ball clear enough to perfectly predict the long-term impact of Obamacare on retirees. The dynamics of the healthcare marketplace are complex and the effect of thousands of new patients and illnesses into the system won’t be clear for some time. We do know that fears about losing your doctor are probably overblown. A 2013 report by the Department of Health and Human Services found that the percentage of physicians accepting new Medicare patients has stayed stable over the past seven years, despite changes in Medicare payments.[i]

We also know is that being a retiree in 2014 is very different than being a retiree in 1965, the year Medicare was born. Today, retirement is more like the dawn of a new phase of life rather than its twilight, and preventative medicine has become very important to living an active, comfortable life.

While we’re certainly not doctors, and don’t dispense medical advice, we encourage our clients to take advantage of wellness visits because prevention and early detection are so important to staying healthy. If you’re eligible for Medicare, Medicare.gov can help you understand the various preventive services like annual check-ups, cancer screenings, mammograms, vaccinations, and diabetes screenings.

We also encourage clients not to forego insurance, even when it adds an unwelcome bill every month. Not buying insurance could be even more expensive than the penalty the ACA imposes ($95 per adult in 2014 or 1 percent of family income, whichever is greater.) In effect, by not purchasing insurance coverage, you are making yourself completely responsible for medical expenses that could easily cost more than $100,000 for a major illness or injury.

If you are not eligible for Medicare coverage, the state and federal health insurance exchanges can be a way to shop smart for coverage that meets your needs without breaking the bank.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.